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What Is Interaction Coupling? How Can Interaction Coupling Be Minimized

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What is interaction coupling? How can interaction coupling be minimized?


Definitions:

Cyclical Stock

Stocks whose performance is tightly tied to the economic cycle, rising with economic growth and falling with contraction.

Countercyclical Stock

A stock whose price tends to move in opposition to the overall business cycle, performing well during economic downturns.

Standard Deviation

A measure of the dispersion or variability of a set of data points relative to their mean, used to gauge the amount of variation or spread in a distribution.

Risk Premium

The additional return over the risk-free rate demanded by investors for taking on a higher level of risk.

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